Organogenesis, Inc. v. Ness

Filing 34

ORDER Granting 33 Stipulated Final Judgment and Permanent Injunction. Signed by Chief Judge Gloria M. Navarro on 8/1/2016. (Copies have been distributed pursuant to the NEF - SLD)

Case 2:16-cv-00989-GMN-CWH Document 33 Filed 07/28/16 Page 1 of 5

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BRUCE C. YOUNG, ESQ., Bar #5560
[e-mail]
KATHRYN B. BLAKEY, ESQ., Bar #12701
[e-mail]
LITTLER MENDELSON, P.C.
3960 Howard Hughes Parkway, Suite 300
Las Vegas, NV 89169-5937
Telephone:
702.862.8800
Fax No.:
702.862.8811
Attorneys for Defendant
FAYTHE NESS

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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ORGANOGENESIS INC.,

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Plaintiff,

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vs.

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FAYTHE NESS,

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Case No. 2:16-CV-00989-GMN-CWH
[PROPOSED] STIPULATED FINAL
JUDGMENT AND PERMANENT
INJUNCTION

Defendant.

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TO THE PARTIES AND THEIR ATTORNEYS OF RECORD:

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This matter comes before the Court on Plaintiff ORGANOGENESIS INC.’s (hereinafter

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“Plaintiff” or “Organogenesis”) Complaint and Emergency Motion for Temporary Restraining Order

20

and Motion for Preliminary Injunction against Defendant FAYTHE NESS (“Defendant” or “Ness”).

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I.

CASE BACKGROUND AND COURSE OF PROCEEDINGS

22

On May 3, 2016, Plaintiff applied to this Court for an Emergency Motion for Temporary

23

Restraining Order [ECF No. 8] and Motion for Preliminary Injunction [ECF No. 9]. That same day,

24

the Court entered an Order on Plaintiff’s Emergency Motion for Temporary Restraining Order

25

keeping it in place until the hearing on the Motion for Preliminary Injunction, which the Court set

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for Monday, May 23, 2016. [ECF No. 10]. On May 13, 2016, Defendant filed her Response to the

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Motion for Preliminary Injunction. [ECF No. 19]. Plaintiff filed its Reply on May 18, 2016. [ECF

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No. 22].

B4563646.3

Case 2:16-cv-00989-GMN-CWH Document 33 Filed 07/28/16 Page 2 of 5

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On May 23, 2016, at the scheduled hearing, the Court heard oral arguments on the Motion

2

for Preliminary Injunction and took the matter under submission. [ECF No. 23]. On May 24, 2016,

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the Court issued an Order granting Plaintiff’s Motion for Preliminary Injunction and entered the

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following Order:

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1.
Defendant Ness shall not, within her former Organogenesis sales territory,
participate as a salesperson or employee of any other business, firm or corporation
which is, or by her action would become, competitive with the Business of
Organogenesis, including MiMedx; and

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2.
Defendant Ness, on her own concert with others, shall not attempt to interfere
with or entice away any Organogenesis customer within her former Organogenesis
sales territory.

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For the purposes of this Order, the “Business of Organogenesis” shall mean the
research, development, biological engineering work, technical and clinical feasibility
investigations (conducted or contemplated), governmental, fabricated, packaged, sold,
distributed, licensed, offered or contemplated to be offer for sale or license by
Organogenesis in the field of tissue regeneration, including living and non-living
tissue and organ replacement and repair constructs, related to the fields of wound
repair, bio-surgery, and bio-aesthetics, including but not limited to: (a) living dermal
equivalents, living epidermal equivalents, living skin equivalents, wound coverings
and wound management products; (b) living connective tissue constructs and
biomaterial constructs for the repair and/or replacement tendon, ligament, body-wall,
cardiac tissue, vasculature, bone, cartilage, neural tissue; (c) injectable matrix
compositions, injectable cell compositions, topical compositions containing
cytokines, growth factors, and other cellcommunication compounds; (d) natural and
synthesized collagen compositions, and natural and synthesized extracellular matrix
compositions; (e) cell culture medial for culturing cells and living constructs; (f) stem
cells; and (g) cell-delivery constructs.

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ECF No. 24, at pp.10-11.

20

Also on May 24, 2016, Defendant filed her Answer to Defendant’s Complaint. [ECF No.

21

25]. On June 8, 2016, Pursuant to Federal Rule of Civil Procedure 26(f) and Local Rule of Court 26-

22

1(d), the parties conducted a meeting to discuss the relevant issues for discovery, possible early

23

resolution of the matter, and other pertinent issues.

24

discussions and negotiations, the parties have reached a resolution of this action, to be effectuated in

25

part pursuant to the terms of a Stipulated Permanent Injunction. The resolution of this action

26

between the parties is contingent upon entry by the Court of this Final Judgment and Permanent

27

Injunction.

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///
2.
B4563646.3

Pursuant to that meeting and follow up

Case 2:16-cv-00989-GMN-CWH Document 33 Filed 07/28/16 Page 3 of 5

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ACCORDINGLY, IT IS HEREBY ORDERED, ADJUDGED AND DECREED AS

2

FOLLOWS:

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II.

4

CONSENT PERMANENT INJUNCTION
1.

For a period of twelve (12) months from May 3, 2016, Defendant Ness is hereby

5

enjoined and prohibited from marketing or selling products that are competitive with the products

6

she was responsible to market or sell during her employment with Organogenesis (i.e. Apligraf®,

7

Dermagraft®, and PuraPly™) in her former Organogenesis sales territory. For the purposes of this

8

Order, Defendant Ness’s former Organogenesis sales territory consists of the municipalities listed in

9

the attached Exhibit A.

10

2.

For a period of twelve (12) months from May 3, 2016, Defendant Ness, on her own or

11

in concert with others, shall not attempt to interfere with or entice away any Organogenesis customer

12

within her former Organogenesis sales territory.

13
14
15

3.

Notwithstanding the foregoing, Defendant Ness is permitted to market and sell

AmnioFix® on behalf of MiMedx Group, Inc.
4.

Defendant Ness is further permitted to sell EpiBurn™ at burn care centers provided

16

that such activities would not require her to have contact with any customers or potential customers

17

of Organogenesis with whom Ness had contact during her employment with Organogenesis or

18

whom may use PuraPly™ in other areas of their practice.

19

5.

Defendant Ness is further enjoined from disseminating, publishing, disclosing, using

20

for her own benefit or the benefit of others, or divulging or conveying to others, any trade secrets of

21

Organogenesis.

22

6.

Defendant Ness shall not use, disclose or disseminate any confidential or proprietary

23

information she had access to at Organogenesis, such as customer information or information

24

otherwise described in the confidentiality obligations set forth in her Confidentiality and Non-

25

Solicitation Agreement.

26
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7.

Defendant Ness is further enjoined and prohibited from removing, altering, erasing,

deleting, or destroying any evidence, or potential evidence relevant to the instant litigation.
8.

This Order shall remain in place as a permanent injunction.
3.

B4563646.3

Case 2:16-cv-00989-GMN-CWH Document 33 Filed 07/28/16 Page 4 of 5

1

III.

DISMISSAL

2

Subject to Section II of this Order, the Parties have stipulated to the dismissal with prejudice

3

of all Organogenesis’ claims against Ness asserted in this action, provided that the Court approves

4

and enters this Order as submitted by the Parties.

5

ORDERED that Organogenesis’ claims against Ness alleged in this action are dismissed with

6

prejudice, subject to section V below.

7

IV.

8
9

Having approved this Order, it is hereby

EFFECTIVE DATE
The effective date of this Order shall be the date upon which it is entered by the Court.

V.

RETENTION OF JURISDICTION

10

This Court shall retain jurisdiction over this case and the Parties for the purposes of resolving

11

any disputes arising under this Order, entering orders modifying this Order, or effectuating or

12

enforcing compliance with the terms of this Order. Violations of this Order may be punishable as a

13

contempt of Court. The Court shall retain jurisdiction over any injunctions in this Order until such

14

injunctions expire by their own respective terms.

15

VI.

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17

FINAL JUDGMENT
Upon approval and entry of this Order, this Order shall constitute the final judgment in this

action regarding the claims by Organogenesis against Ness.

18

IT IS SO ORDERED.

19

DATED: This ____ day of August, 2016.
1

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21

UNITED STATES DISTRICT COURT JUDGE

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4.
B4563646.3

Case 2:16-cv-00989-GMN-CWH Document 33 Filed 07/28/16 Page 5 of 5

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Dated: July 28, 2016

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Respectfully submitted,

Respectfully submitted,

/s/ Doreen Spears, Esq.
DOREEN SPEARS, ESQ.
LAURA J. THALACKER, ESQ.
HARTWELL THALACKER, LTD.

/s/ Kathryn B. Blakey, Esq.
BRUCE YOUNG, ESQ.
KATHRYN B. BLAKEY, ESQ.
LITTLER MENDELSON, P.C.

Attorneys for Plaintiff
ORGANOGENESIS INC.

Attorneys for Defendants
FAYTHE NESS

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Respectfully submitted,
/s/ Christopher S. Fuedo, Esq.
CHRISTOPHER S. FEUDO, ESQ.
FOLEY HOAG LLP
Attorneys for Plaintiff
ORGANOGENESIS INC.

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Firmwide:141659456.1 089186.1001

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B4563646.3

Case 2:16-cv-00989-GMN-CWH Document 33-1 Filed 07/28/16 Page 1 of 7

EXHIBIT A

Case 2:16-cv-00989-GMN-CWH Document 24 Filed 05/23/16 Page 122of 17
Case 2:16-cv-00989-GMN-CWH Document 33-1 Filed 07/28/16 Page of 7

Exhibit
A

ZIP Code
84710
84714
84719
84720
84721
84722
84725
84729
84733
84735
84737
84738
84742
84745
84746
84753
84755
84756
84757
84758
84759
84760
84761
84762
84763
84765
84767
84770
84771
84772
84774
84779
84780
84781
84782
84783
84784
84790
84791
85325
85328
85334
85344
85346
85348
85357

City

State Name

ST Abbrev

ALTON

UTAH

UT

BERYL
BRIAN HEAD

UTAH

UT

UTAH

UT

CEDAR CITY

UTAH

CEDAR CITY
CENTRAL

UTAH
UTAH

UT
UT
UT

ENTERPRISE

UTAH

UT

GLENDALE
GUNLOCK

UTAH
UTAH

UT
UT

HATCH
HURRICANE
IVINS

UTAH
UTAH
UTAH

UT
UT
UT

KANARRAVILLE

UTAH

UT

LA VERKIN

UTAH

UT

LEEDS
MODENA
MOUNT CARMEL

UTAH
UTAH
UTAH

UT
UT

NEWCASTLE

UTAH

UT
UT

NEW HARMONY
ORDERVILLE
PANGUITCH

UTAH
UTAH
UTAH

UT
UT
UT

PARAGONAH
PAROWAN
DUCK CREEK VILLAGE
ROCKVILLE

UTAH
UTAH
UTAH
UTAH

UT
UT
UT
UT

SANTA CLARA
SPRINGDALE
SAINT GEORGE
SAINT GEORGE

UTAH
UTAH
UTAH
UTAH

UT
UT
UT
UT

SUMMIT
TOQUERVILLE

UTAH
UTAH

UT
UT

VIRGIN

UTAH

UT

WASHINGTON

UTAH

UT

PINE VALLEY
VEYO

UTAH

UT

DAMMERON VALLEY
HILDALE

UTAH
UTAH
UTAH

UT
UT
UT

SAINT GEORGE

UTAH

UT

SAINT GEORGE
BOUSE

UTAH
ARIZONA

UT
AZ

CIBOLA

ARIZONA

AZ

EHRENBERG
PARKER

ARIZONA
ARIZONA

AZ
AZ

QUARTZSITE
SALOME

ARIZONA
ARIZONA

AZ
AZ

WEND EN

ARIZONA

AZ

Case 2:16-cv-00989-GMN-CWH Document 24 Filed 05/23/16 Page 133of 17
Case 2:16-cv-00989-GMN-CWH Document 33-1 Filed 07/28/16 Page of 7

85359
85360
85371
86401
86402
86403
86404
86405
86406
86409
86412
86413
86426
86427
86429
86430
86431
86433
86436
86437
86438
86439
86440
86441
86442
86443
86444
86445
86446
88901
88905
89001
89002
89003
89004
89005
89006
89007
89008
89009
89010
89011
89012
89013
89014
89015
89016

WIKIEUP

QUARTZSITE

ARIZONA
ARIZONA

AZ
AZ

POSTON

ARIZONA

AZ

KINGMAN

ARIZONA

AZ

KINGMAN

ARIZONA

AZ

LAKE HAVASU CITY

ARIZONA

AZ

LAKE HAVASU CITY

ARIZONA

AZ

LAKE HAVASU CITY
LAKE HAVASU CITY
KINGMAN

ARIZONA

AZ

ARIZONA
ARIZONA

AZ

HUALAPAI
GOLDEN VALLEY

ARIZONA
ARIZONA

FORT MOHAVE

ARIZON

FORT MOHAVE

ARIZONA

AZ

BULLHEAD CITY

ARIZONA

AZ

BULLHEAD CITY
CHLORIDE
OATMAN

ARIZONA
ARIZONA
ARIZONA

AZ
AZ
AZ

TO POCK
VALENTINE

ARIZONA
ARIZONA
ARIZONA

AZ
AZ
AZ

MOHAVE VALLEY
DOLAN SPRINGS

ARIZONA
ARIZONA
ARIZONA

AZ
AZ
AZ

BULLHEAD CITY
TEMPLE BAR MARINA

ARIZONA
ARIZONA

AZ
AZ

MEADVIEW
WILLOW BEACH
MOHAVE VALLEY

ARIZONA
ARIZONA

AZ
AZ

ARIZONA
NEVADA

AZ
NV

NEVADA
NEVADA

NV

YUCCA
BULLHEAD CITY

THE LAKES
THE LAKES

AZ
AZ
AZ

ALAMO
HENDERSON
BEATTY

NEVADA
NEVADA

NV
NV
NV

BLUE DIAMOND
BOULDER CITY

NEVADA
NEVADA

NV
NV

BOULDER CITY

NEVADA
NEVADA

NV
NV

NEVADA

NV

DYER
HENDERSON

NEVADA
NEVADA
NEVADA

NV
NV

HENDERSON

NEVADA

GOLDFIELD

NEVADA

NV
NV

BUNKERVILLE
CALIENTE
HENDERSON

NV

HENDERSON

NEVADA

NV

HENDERSON

NEVADA

NV

HENDERSON

NEVADA

NV

Case 2:16-cv-00989-GMN-CWH Document 24 Filed 05/23/16 Page 144of 17
Case 2:16-cv-00989-GMN-CWH Document 33-1 Filed 07/28/16 Page of 7

89017
89018
89019
89020
89021
89022
89023
89024
89025
89026
89027
89028
89029
89030
89031
89032
89033
89034
89036
89037
89039
89040
89041
89042

89043
89044
89045
89046
89047
89048
89049
89052
89053
89054
89060
89061
89067
89070
89074
89077
89081
89084
89085
89086
89087
89101
89102

HIKO
INDIAN SPRINGS

NEVADA

NV

NEVADA

NV

JEAN

NEVADA

NV

AMARGOSA VALLEY

NEVADA

NV

LOGAN DALE
MANHATIAN

NEVADA

NV

NEVADA

MERCURY
MESQUITE
MOAPA
JEAN

NEVADA
NEVADA
NEVADA
NEVADA

NV
NV
NV
NV
NV

MESQUITE

NEVADA

NV

LAUGHLIN

NEVADA

NV

LAUGHLIN
NORTH LAS VEGAS

NEVADA
NEVADA

NV
NV

NORTH LAS VEGAS

NEVADA

NV

NORTH LAS VEGAS
NORTH LAS VEGAS

NEVADA
NEVADA

MESQUITE

NEVADA

NV
NV
NV

NORTH LAS VEGAS
COYOTE SPRINGS

NEVADA
NEVADA

CAL NEV ARI
OVERTON

NEVADA

PAHRUMP
PANACA
PIOCHE
HENDERSON

NEVADA
NEVADA
NEVADA
NEVADA
NEVADA

NV
NV
NV
NV
NV
NV
NV
NV

ROUND MOUNTAIN

NEVADA

NV

SEARCHLIGHT
SILVERPEAK
PAHRUMP

NEVADA
NEVADA
NEVADA

NV
NV
NV

TONOPAH

NEVADA

NV

HENDERSON
HENDERSON
LAS VEGAS

NEVADA
NEVADA

NV
NV

NEVADA

NV

PAHRUMP

NEVADA

NV

PAHRUMP
COYOTE SPRINGS

NEVADA
NEVADA

NV
NV

INDIAN SPRINGS

NEVADA

NV

HENDERSON
HENDERSON

NEVADA
NEVADA

NV
NV

NORTH LAS VEGAS
NORTH LAS VEGAS

NEVADA
NEVADA

NV
NV

NORTH LAS VEGAS
NORTH LAS VEGAS
NORTH LAS VEGAS

NEVADA
NEVADA
NEVADA

NV
NV

LAS VEGAS

NEVADA

NV

LAS VEGAS

NEVADA

NV

NV

Case 2:16-cv-00989-GMN-CWH Document 24 Filed 05/23/16 Page 155of 17
Case 2:16-cv-00989-GMN-CWH Document 33-1 Filed 07/28/16 Page of 7

89103
89104
89105
89106
89107
89108
89109
89110
89111
89112
89113
89114
89115
89116
89117
89118
89119
89120
89121
89122
89123
89124
89125
89126
89127
89128
89129
89130
89131
89132
89133
89134
89135
89136
89137
89138
89139
89140
89141
89142
89143
89144
89145
89146
89147
89148
89149

LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
,t.AS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS

NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA

NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV

Case 2:16-cv-00989-GMN-CWH Document 24 Filed 05/23/16 Page 166of 17
Case 2:16-cv-00989-GMN-CWH Document 33-1 Filed 07/28/16 Page of 7

89150
89151
89152
89153
89154
89155
89156
89157
89158
89159
89160
89161
89162
89163
89164
89165
89166
89169
89170
89173
89177
89178
89179
89180
89183
89185
89191
89193
89195
89199
89301
89310
89311
89314
89315
89316
89317
89318
89319
89404
89405
89406
89407
89408
89409
89412
89414

LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
LAS VEGAS
NELLIS AFB
LAS VEGAS
LAS VEGAS
LAS VEGAS
ELY
AUSTIN
BAKER
DUCKWATER
EAST ELY
EUREKA
LUND
MCGILL
RUTH
DENIO
EMPIRE
FALLON
FALLON
FERNLEY
GA BBS
GERLACH
GOLCONDA

NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA
NEVADA

NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV
NV

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89415
89418
89419
89420
89421
89422
89424
89425
89438
89442
89496
89801
89802
89803
89815
89820
89821
89822
89823
89824
89828
89830
89833
89834
89835
89883
92225
92226
92242
92267
92363

HAWTHORNE
IMLAY
LOVELOCK
LUNING
MCDERMID
MINA
NIXON
OROVADA
VALMY
WADSWORTH
FALLON
ELKO
ELKO
ELKO
SPRING CREEK
BATILE MOUNTAIN
CRESCENT VALLEY
CARLIN
DEETH
HALLECK
LAMOILLE
MONTELLO
RUBY VALLEY
TUSCARORA
WELLS
WEST WENDOVER
BLYTHE
BLYTHE
EARP
PARKER DAM
NEEDLES

NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
NEVADA
NV
CALIFORNIA CA
CALIFORNIA CA
CALIFORNIA CA
CALIFORNIA CA
CALIFORNIA CA